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20something and strapped for cash? Here are 10 ways you’re actually making it worse right now

20something and strapped for cash? Here are 10 ways you’re actually making it worse right now

How To Afford The Life You Want

20something and strapped for cash? Here are 10 ways you’re actually making it worse right now

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Illustration: Joseph Tey Make a few clever moves now so you can afford the life you want later. BY MARK TAY 1. You’re putting off saving money till you get a bigger pay cheque

You might not be bringing home a big monthly pay cheque right now but what you have is time on your side. Putting a small sum of money away in a savings or endowment plan now will give you greater returns than if you put it off till when you’re in your supposedly more responsible 30s. (And let’s be honest: Saying you’ll save more when you’re older is like saying you’ll start your diet tomorrow — it rarely ever happens.) The earlier you start, the less you’ll need to put away each month to get that fat pay-out down the road. 2. You don’t have a big goal

Chances are if you’re not saving for something big like a car or a flat, you’ll just end up spending whatever you see in your bank account. So pick a goal that makes sense to you and save towards it. Even if you end up changing your mind about that big ticket item, you’ll have amassed a decent sum for something else that catches your eye. 3. You’re overly reliant on your credit card

Credit card interest rates are huge at 20 per cent and above per annum, and this can get you into serious financial trouble if you don’t get a handle on the situation. You know how compounded interest rates can make a small amount of funds in your savings account grow significantly over time, right? Well, imagine an interest rate about 20 times higher, doing the exact opposite of growing your funds. Yes, even if you pay the “minimum amount” every month. It’s scary. And it’s real. 4. You can’t afford your daily drinking habits

When you’re just starting out in the work force, every dollar counts. You might love ordering a venti double-caramel-mocha Frappuccino twice a day, or going café hopping on your coffee breaks. But over a full month, that’s going to put a considerable dent in your finances (and we’re not even going to begin on how much sugar you’re pouring into your body). Try opting for less expensive alternatives just for one month, and see how much you’ve saved. We’re going to guess around S$160 which translates to almost $2,000 in savings on coffee alone in a year. You’d probably agree there something else you’d want to spend that kind of money on. 5. You’re a slave to branded consumerism

It’s great to have the chance to own nice things, and we aren’t here to say you shouldn’t buy something you really want. Just don’t max out your credit card on a bag you can’t afford right now (and spend the next six months paying it off with interest). We live in a great shopping town, and you know you can find great deals online that don’t scrimp on quality and workmanship. There’ll be a time when you’ll be able to snap your fingers and buy shoes, bags or whatever from whichever brand you want. But that time will come a lot quicker if you don’t jump the gun right now. 6. You’re spending too much on technology

Technology is advancing so quickly that we have the benefit of witnessing incredible new launches each month. But therein lies the problem: Smart phones, tablets, digital SLR cameras and almost anything that works with a motherboard are not generally built for longevity in these fast-paced times. You should definitely get yourself technology that makes you a more productive person, but chasing after every new tech toy the minute it comes out never ends well for your money. In fact, it just never ends. And if you’re saying, “But collecting gadgets is my hobby!” … Well, we hate to break it to you but you seriously need a new hobby. 7. You’re not exercising

Your body isn’t going to be young forever, and over time you’re going to experience aches and pains just like the old people (30somethings) in your office. Staying fit will help to slow down the process of becoming an old person — and help lessen expensive medical costs you may require in just a decade. Your wallet will thank you when you get older. Trust us on this one. Try starting small, like walking from the MRT station back home instead of cabbing it from the doorstep of your office to the doorstep of your house. And think of the money you’ll save: Switching from taxis to public transport will save you around S$18 a day. That’s S$4,320 a year. Which is a whopping S$12,960 over the three years you’ll be at your job. All that money and a firmer bum. What’s not to love? 8. You’ve got the wrong job and you’re not doing anything about it

You may not like your job right now, and though that’s pretty common for people in their first or second job, it doesn’t mean you should just be okay with it. Set aside some time at the end of each week or month to evaluate where you are right now in your career and where you want to be. Decide how you’ll need to re-configure your lifestyle, spending and saving habits to support a possible lapse in your monthly salary. That way, when you find another path you want to take in your career, you’ll be in the position to make the move quick instead of sticking to the job you hate just because there are bills to be paid at the end of the month. 9. You can’t cook for yourself

Learning to cook may not be the first thing to come to mind when you’re thinking about conserving cash. Truth is, having the skill and knowledge of how not to burn down the kitchen means you won’t always need to depend on overpriced hipster cafes for your meals. (And, guys: Being able to cook is pretty badass in this day and age. Ask your friends who date.) Not only will whipping up your own meals on occasion help save you cash, it’ll also allow you to eat better because you know exactly what you’re putting into your body. Note: Being able to crack an egg into your al dente instant noodles, while commendable, doesn’t count. 10. You’re not working at your dreams

There’s a saying that goes, if you choose a job you love, you’ll never work a day in your life. Truth is, very few of us get to do exactly what we love from the get-go. That’s the part you can’t change. What you can change is having a conscious mind-set to put yourself on the path towards your dream job. Want to build the next great smartphone app? Then maybe you should learn code, or get to know existing app developers. Don’t do it, and you won’t get an idea of what your dream job really encompasses, from the experience you’ll require, to the hours you’ll need to put in, to how much you’ll be able to actually make if it became your career. It may take more time from your schedule outside work, but if that’s really want you want to do, you’ll be enjoying every minute of it. And if you decide it actually isn’t for you, you’ve just saved yourself a whole lot of

afford the life you want.

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